Freelance rate calculatorThe hourly rate your income goal and costs actually need
Free, no signup. Runs in your browser. All free tools
Charge at least
$88.70 / hr
- Day rate (8 hours)
- $710
- Billable hours a year
- 1,150
- Revenue you need
- $102,000
- Quote at 20% margin
- $110.87 / hr
The first rate is your floor. Quote above it so a slow month or a scope overrun doesn’t eat your pay.
How your rate is worked out
billable hours = hours a week × (52 − weeks off)
floor rate = (income + expenses) ÷ billable hours
quote rate = floor rate ÷ (1 − margin)
Pay yourself $120,000, spend $20,000 on the business, and bill 30 hours a week with 4 weeks off: that’s 1,440 billable hours and $140,000 to earn, so your floor is $97.22 an hour. With a 20% margin on top, quote $121.53.
From hourly rate to a profitable quote
Your hourly rate is a floor, not a finished price. Check the profit margin on real projects, package steady work into a retainer, and build in a buffer for scope creep. Tillage quotes are hours × rate with a variance buffer and margin on every line, so you stop pricing from your gut.
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Rate questions
How do I calculate my freelance hourly rate?
Add what you want to pay yourself before tax to your yearly business expenses. That’s the revenue you need. Divide it by your realistic billable hours for the year: hours a week × working weeks. The result is your minimum hourly rate, the floor you shouldn’t quote below.
Why are my billable hours lower than my working hours?
Not every hour is billable. Admin, sales, marketing and breaks aren’t paid by clients, so most freelancers bill 20 to 30 hours of a 40-hour week. Using real billable hours, not total hours, keeps your rate honest.
Should I add a profit margin on top of this rate?
Yes. The floor only covers your pay and costs. A margin on top, often 20% or more, lets the business absorb scope creep, slow months and reinvestment. The calculator shows the rate to quote at the margin you enter.
Does this rate include income tax?
No. Enter the income you want before tax. If you have a take-home figure in mind, gross it up for your income and self-employment taxes first, or add your expected tax bill to expenses.
How is an agency rate different from a freelance rate?
Agencies add team costs, overhead and a target profit margin on top of the base labor rate, and often price by project or value instead of the hour. The same floor logic applies, with more costs to cover before profit.
